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If the opening inventory of a business is undercast, it will
Increase gross profit and decrease net profit
Decrease gross profit as well as net profit
Increase value of assets
Increase gross profit as well as net profit
If the opening inventory of a business is undercast, it will Increase gross profit as well as net profit. Undercast is a type of forecasting error that occurs when estimates turn out to be below realized values. These estimates could apply to sales, an expense line item, net income, cash flow, or any other financial account.
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